#3: J. C. has been a professional gambler for many years. He loves this line of work and believes the income is tax-free. Is J. C.'s thinking correct? Is the answer to this question found in the Internal Revenue Code? If not, what type of authority answers this question? Search online for a court case that answers the question (think precedent), and cite it as "_______v.______." Make sure you answer the question!

(1) What are the key facts in each of the 3 problems?

(2) What is the general issue to be addressed?

(3) What key words would you use to research this question?

(4) Use online tax research tools to answer the question. (Several are listed in Chapter 2.)

(5) What important information would you include in a memo/letter to the client to communicate the results of your research?